2. K.K. Menasha is in business as a trader. A trial balance taken out as on 31t January, 2006, was as follows:GH¢GH¢Purchases84,000Sales100,480Return inwards& outwards272696Salaries & wagesRent & rates8,2001,7201,500268Sundry ExpensesBad DebtsProvision for bad debts-1st Feb. 2005560Stock on hand-1st Feb. 2005Fixtures & Fittings:27,260-1st February, 2005-Additions on 30" September, 20052,800480Motor Vehicle:-1s February, 20051,840-Sales of vehicle (NBV 1/2/05, ¢160)2409,220Sundry Debtors & CreditorsCash at Bank & in hand7,7047,640Capital AccountDrawings Account41,5205,200151,200151,200Yourequired to prepare Statement of Profit or Loss for the year ended 31" January 2006, and draw up a Statement of Position as at that date.The following information is to be taken into account.Outstanding amounts not entered in the books were: Rent ¢72, sundry expenses ¢180.Prepayments were: Rates ¢120, Insurance ¢20Stock on hand on 31st January 2006 was valued at ¢30,900.Provision for doubtful debts is to be ¢680Depreciation is to be charged as follows: Fixtures and Fittings, 10% p.a; Motor Vehicles 25% p.a.

Income statement is a statement that helps in determining the income or the profit and loss of a…

st 2. K.K. Menasha is in business as a trader. A trial balance taken out as on 31°t January, 2006, was as follows: GH¢ GH¢ Purchases 84,000 Sales 100,480 696 Return inwards& outwards 272 Salaries & wages 8,200 1,720 1,500 Rent & rates Sundry Expenses Bad Debts 268 Provision for bad debts-1st Feb. 2005 Stock on hand-1st Feb. 2005 560 27,260 Fixtures & Fittings: -1st 'February, 2005 -Additions on 30" September, 2005 2,800 480 Motor Vehicle: -1 February, 2005 1,840 -Sales of vehicle (NBV 1/2/05, ¢160) 240 Sundry Debtors & Creditors 9,220 7,704 Cash at Bank & in hand 7,640 Capital Account Drawings Account 41,520 5,200 151,200 151,200 You are required to prepare Statement of Profit or Loss for the year ended 31* January 2006, and draw up a Statement of Positi The following information is to be taken into account. Outstanding amounts not entered in the books were: Rent ¢72, sundry expenses ¢180. Prepayments were: Rates ¢120, Insurance ¢20 Stock on hand on 31ª January 2006 was valued at ¢30,900. Provision for doubtful debts is to be ¢680 Depreciation is to be charged as follows: Fixtures and Fittings, 10% p.a; Motor Vehicles 25% p.a.

st 2. K.K. Menasha is in business as a trader. A trial balance taken out as on 31°t January, 2006, was as follows: GH¢ GH¢ Purchases 84,000 Sales 100,480 696 Return inwards& outwards 272 Salaries & wages 8,200 1,720 1,500 Rent & rates Sundry Expenses Bad Debts 268 Provision for bad debts-1st Feb. 2005 Stock on hand-1st Feb. 2005 560 27,260 Fixtures & Fittings: -1st 'February, 2005 -Additions on 30" September, 2005 2,800 480 Motor Vehicle: -1 February, 2005 1,840 -Sales of vehicle (NBV 1/2/05, ¢160) 240 Sundry Debtors & Creditors 9,220 7,704 Cash at Bank & in hand 7,640 Capital Account Drawings Account 41,520 5,200 151,200 151,200 You are required to prepare Statement of Profit or Loss for the year ended 31* January 2006, and draw up a Statement of Positi The following information is to be taken into account. Outstanding amounts not entered in the books were: Rent ¢72, sundry expenses ¢180. Prepayments were: Rates ¢120, Insurance ¢20 Stock on hand on 31ª January 2006 was valued at ¢30,900. Provision for doubtful debts is to be ¢680 Depreciation is to be charged as follows: Fixtures and Fittings, 10% p.a; Motor Vehicles 25% p.a.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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